Legal Question in Bankruptcy in California

I filed for bankruptcy in June 2009. I have now received a discharge however I have a creditor that has filed an adversary action against me. It is within the guidelines of 60 days of my original hearing. I took out a line of credit in 3/2008 I paid it off in 7/2008 because I was able to use a equity line of credit on my cousins house. She told me in 12/2008 I had to take back my debt because she was refinancing her house. So I placed it back on my credit line 12/2008. I ended up filing for bankruptcy due to loss of wages, a separation from my boyfriend and loss of child support from my ex-husband. I had no control over my significant wage loss. I had every intention to repay the debt. I did submit all of the information to the attorney for the creditor and they are still pursuing adversary action against me. Based on these facts do you feel they will be able to obtain a judgement against me?


Asked on 10/12/09, 2:55 pm

1 Answer from Attorneys
David Gibbs The Gibbs Law Firm, APC

From the facts you have posted, nobody can really give you a solid opinion as to whether or not that debt is going to be found to be non-dischargeable. Regardless of the facts, if you do not defend the adversarial proceeding, it will be excepted from your discharge, and you will be stuck repaying it. You have three options. Do nothing, and then I can almost guarantee that they will win. Defend it, and you at least have a chance of prevailing. Finally, if you cannot afford to hire someone to defend the adversarial and cannot do it yourself, then attempt to negotiate a settlement with the creditor. They do not want to take this case to trial almost as much as you, so if you can reach a settlement with them, you can make this go away.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.

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Answered on 10/14/09, 7:51 pm


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